|Rate||5.50%**See Below||5.50%**See Below|
Rates: Prime + 2.00% if the LTC is greater than 80%. The rate is Prime + 1.00% if the LTC is 80% or less. **There is a 5.50% floor on the rate.**
Closing Fees: *Wholesale pricing, retail loans include loan packaging origination fees 1.00% Origination (2% fee on loans less than $100,000)
$160 Document prep
$37 Flood Cert/Wire
$100 per month Inspection Fee (based on loan term)
$300 Servicing fee on a 9 month loan
$600 Servicing fee on a 12 month loan
Owner-Builder: Allowed. $300,000 general liability rider required on course of construction insurance. A letter of qualification required, stating by what means, contacts, or experience qualifies the borrowers to build their own house. **The origination fee for owner-builder projects is 1.50%.**
Appraisal: Utah only–CCS will order the appraisal. CCS needs the cost breakdown, full set of plans, and check made out to “Construction Capital Source”. Salt Lake Metro — $400. Everywhere else and Jumbo’s — call for price. All appraisals must be prepaid.
Term: 6 months. 9, 12, or 18 months may be granted for bigger projects on a case-by-case basis. In such cases, a $300 servicing fee will be added for each additional 3 month period.
Extensions: One 3 month extension can be granted for homes not finished within the original term. An extension fee of 0.50% of the original principal amount will be charged to the borrower.
Modification Fee: A 3% Modification Fee will be charged anytime a loan is paid off by someone other than the original borrower, or the property is offered for sale.
Current Home: The borrower’s current house payment will be included in ratio calculations.
Eligible Borrowers: Individuals only.
Eligible Properties: Owner occupied, primary residences only.
Contingency: 5% minimum contingency fund required.
Interest Reserve: Required interest reserve account is built into the soft costs of the loan. This account is calculated by the following formula:
Loan with lot payoff: (Loan amount x 65% x rate x term/12)
Loan without lot payoff: (Loan amount x 50% x rate x term/12)
This account will pay the interest due during the term of the construction loan.
Builder Pre-sold (Loan in the Builder’s Name): Currently not available.
This product information may be changed at any time and is intended exclusively for CCS-approved mortgage brokers.